Union Minister JP Nadda on Saturday, 24 October 2026, declared that India's chemicals and petrochemicals sector must scale from its current market size of approximately $220 billion to $1 trillion by 2040 — and further to $1.6 trillion by 2047 — if the country is to realise its Viksit Bharat ambitions. Nadda made the remarks at the closing session of India Chem-2026, a three-day industry conclave held in Mumbai.

The $1 Trillion Target

Addressing the CEOs Forum, which he personally presided over, Nadda described the chemicals and petrochemicals industry as a 'sunrise sector' with the structural potential to serve as a pillar of India's economic development. He emphasised that the sector's contribution is 'indispensable' to achieving the Viksit Bharat 2047 vision — the government's blueprint for India to become a fully developed nation by its centenary of independence. Reaching $1 trillion by 2040 would mean growing roughly 4.5 times over approximately 14 years, a pace that would require sustained policy support, foreign investment, and technology upgrades.

India-Japan Partnership at the Fore

Japan was the designated partner country for India Chem-2026, reflecting the robust bilateral trade relationship the two nations share, particularly in the chemicals and petrochemicals space. Dedicated brainstorming forums — India-Japan, India-US, and India-EU Chemicals and Petrochemicals Forums — brought together representatives and industry leaders to explore deeper collaboration in trade, investment, and technology transfer. The international dimension of the event underscored India's intent to position itself as a globally competitive hub rather than merely a domestic producer.

Global Participation and Industry Dialogue

The three-day conclave, organised jointly by the Department of Chemicals and Petrochemicals and FICCI, drew participation from Japan, the United States, Canada, the United Kingdom, member states of the European Union, Latin America, the Republic of Korea, and ASEAN nations. Total footfall exceeded 5,000 visitors over the three days. Held under the theme 'Advantage Bharat: An Emerging Global Chemicals Hub', the event featured multiple roundtables on Specialty Chemicals, Infrastructure, Agrochemicals, Environmental Issues, and Plant Machinery — sectors identified as contemporary bottlenecks to rapid growth.

Why This Sector Matters

India's chemicals industry currently accounts for roughly 7% of the country's total exports and supports downstream industries ranging from agriculture and pharmaceuticals to construction and textiles. However, the sector has long lagged behind China in scale and global market share. The push to $1 trillion is in part a strategic response to global supply chain diversification — particularly the 'China-plus-one' trend — that has positioned India as an attractive alternate sourcing destination. This comes amid broader government efforts to attract manufacturing investment through PLI-linked frameworks and streamlined regulatory processes.

What Comes Next

Industry bodies including FICCI are expected to consolidate recommendations from the India Chem-2026 roundtables into a formal policy brief for the Department of Chemicals and Petrochemicals. Regulatory framework improvements, infrastructure investment, and technology partnerships with Japan, the US, and the EU are likely to form the core of the action agenda. The government's next steps in translating the $1 trillion ambition into sectoral schemes will be closely watched by global investors who attended the conclave.